SAC affiliate in $600 mln insider trading settlement with SEC

March 15, 2013|Reuters

March 15 (Reuters) - An affiliate of SAC Capital Advisors LPagreed to pay more than $600 million to settle U.S. Securitiesand Exchange Commission charges that it participated in aninsider trading scheme, the largest settlement of its kind.

The affiliate, CR Intrinsic Investors, had been charged withinsider trading in November, when the SEC said one of itsportfolio managers, Mathew Martoma, illegally obtainedconfidential details about a clinical trial for an Alzheimer'sdrug.

The SEC also said another hedge fund firm with ties to SAC,Sigma Capital Management, agreed to pay nearly $14 million tosettle a separate insider trading case.

Neither firm admitted or denied wrongdoing in agreeing tothe settlements, which were announced on Friday.